Question 13 3.75 When companies establish a credit policy (to determine the criteria under which they will extend trade credit to a customer), their consideration involves a trade-off between the benefit of __ against the cost of Greater profit on credit sales, Greater losses due to customer nonpayment O Greater losses due to customer nonpayment, Greater losses on credit sales O Reporting higher quality earnings: Greater expense relating to collection efforts Taking on longer paying customers; Reporting lower quality earnings